This paper analyzes the behavior of firm(s) serving its products to two countries having different consumers in terms of their valuation of product quality. The home-market of firm(s) is a developed country with small population but high valuation of product quality, while the foreign is a...

This paper analyzes the behavior of monopoly firm serving its products to two countries. The main focus of this paper is on how the product-quality choice in different markets are related with the cost structure of the firm. First, This paper examines the effects of production and R&D costs on...

The optimal design of two-part tariffs is investigated in a dynamic model where two firms belonging to the same supply chain invest in R&D activities to increase the quality of the final product. It is shown that the replication of the vertically integrated monopolist's performance can be...